Portrait of perfect Employer in appearance of Top-Manager

More often, during the interviews we can hear the hidden question “Why should I choose this company?” in speeches of candidates on top-managerial position. Nowadays employers act not only as the human resources buyers, but as the sellers of working advantages.

Today the situation on the Russian HR market allows the demand for highly professional managers to exceed the offer. There phenomenon called “market of candidate” arose. In this situation candidates dictate their terms, forcing employers to be arranged under them. The problem of attraction and deduction of the best managers rises critically.

If the company intends to be the attractive and competitive player of the market, it should know what is necessary for managers to join the team and not to think about resigning.

This theme is widely covered and argued. In order to examine this question, TRANSEARCH/Top Hunt International has decided to receive the needed information directly from the first-hands. We have conducted the “Portrait of ideal Employer research”, which basic purpose was the definition of the key factors motivating top-managers to change the company or to remain on a present place of work.

Representatives of the largest Russian and western companies’ top-management participated in research (65 companies).

Questionnaires with four basic groups of the factors influencing on decision-making on change of the employer/on the decision to remain on the current place of work have been presented to their attention. In each of questionnaire items it was necessary to put down points from 1 up to 5 (1 - minimal estimation, 5 - maximal) on a degree of importance.

The average score corresponding to the importance of certain factors for top-managers was calculated by results of estimations.

On the basis of the data received four groups of factors were singled out: characteristics of the employer, professional factors and compensatory package, the working environment (climate among the colleagues and corporate culture).

Characteristics of the employer

• Reputation of the company.
• Position of the company in the market.
• Brand popularity
• The size of the company.
• History of the company.
• Publicity.
• Field of activity.
• Plans for company development
• Perception

 Among these factors the following are important for managers planning to chage their place of work:  plans for development of the company (4,42), reputation of the company (4,14) and perception of company product by the market (reputation, positioning) (3,68).

Among factors which can keep them on present place of work, respondents also have especially mentioned plans for development of the company (4,58) and reputation of the company (3,97). However the special attention was paid to position of the company in the market (3,69). Global plans for development of the employer make top-managers confident concerning their prospects inside of the organization, and the reputation of firm and its product raise their value as professionals in opinion of business-community.

It is interesting, that the history of the company (2,85) and publicity (2,82) have the least value for managers. Probably, the reason is that none of these factors have any direct relation to the future development of the company.

Professional factors

• The maintenance and complexity of given tasks
• Freedom of decision-making.
• Breadth of powers.
• Opportunity to create something new.
• Prospects of professional growth.
• Prospects of career growth.
• Opportunity of additional education.
• Professional level of colleagues.
• Personal attitude to a product/service of the company.

 The most important factor for managers here is the breadth of powers (4,62 and 4,54).

The breadth of powers presumes that the manager having such authority becomes more self-sufficient employee, capable to work independently, less depending on surrounding structure of the company. Broad authority also means wider cross-functional experience, that gives opportunity for professional and career growth.

Besides, top-managers mentioned freedom in decision-making (4,51 and 4,49). Identical quantity of points was mentioned for the maintenance and complexity of tasks, prospects of career and professional growth (4,48). Making decision to stay at previous place of work, top-managers also pays high attention to the professional level of fellow workers and the personal attitude to a product/service of the company.

The manager would not wish so much to get the position where his duty would be the maintenance of previously debugged processes or where he will be compelled to coordinate each step with the proprietor or the head of the company. The scale of powers is important to top-managers: they are interested not simply to operate a small department, but also to render global influence on activity of the company. The opportunity of additional education (3,48) is least attractive to managers: many of them already have necessary additional education or prefer to get it independently, instead of due to the employer.

Compensatory package

• Total size of the revenue.
• Dependence of the income on the personal contribution to company activity.
• The most important components of package are: insurances, corporate car, social privileges for family members, recreational parts (holidays, fitness).
• An opportunity of options purchase.

 Top-managers that are planning to change work, consider dependence of the income on the personal contribution to work of the company (4,31), total size of the revenue (4,08) and an opportunity of purchase of options (3,31) as the most important factors. Among factors which may force them to remain on a present place of work, the total size of the revenue (4,54), opportunity of purchase of options (4,42), dependence of the income of the excellent contribution to work of the company (4,25) were mentioned.

The question with total size of the revenue is clear. As to the personal contribution to work of the company then it is obvious that the managers deciding to change the employer or making decision to remain at present place of work are guided by different motives.

Holding someone at his present place of work is more inert condition. Accordingly, the employee adheres more to conservative views. Choosing the new place of work the person is motivated for achievement of something greater than he had before, and is ready to risk. Proceeding from this fact, one may state that choosing the new place of work top-manager considers himself not only as the person who can favorably sell his knowledge and experience, but as the businessman ready to risk and receive greater feedback from the enclosed efforts. Recently a plenty of top-managers are interested, whether the new employer gives an opportunity to purchase company options. Options are not only material increase in indemnification, but also increase of the status, transition from the highly paid worker to the proprietor. The offer of an option means long-term motivation and holding of employees on their current place of work. If the opportunity of option purchase is provided in two-three years, the employer can expect that the manager will stay in the company for that period. Furthermore, the opportunity of of options reception can establish the situation when the manager will strive not only for achievement of short-term objectives, but also to increase the cost of the company in long-term prospect.

The environment of work

• Staff
• Relations with the chief/proprietor.
• Position of leaded structure in hierarchy of the company.
• Corporate culture.
• Life conditions of work.

Among most important factors for managers choosing new workplace are relations with the head/proprietor (4,42), position of leaded structure in hierarchy of the company (4,22) and corporate culture (3,82). Deciding to remain at old place of work, the managers mention as most important factors the relations with the head/proprietor (4,49), staff (4,15), position of leaded structure in hierarchy of the company and corporate culture (3,91).

Differing from middle-level managers who are more focused on performance of the functions, top-managers pay great attention to relations with the proprietor. The matter is that top-managers wish to see themselves not only as subordinates, but also as the partners working on achievement of an overall goal. Personal relations between partners are the keystone to success or failure of business.

Results of research allows to make a conclusion, that managers consider themselves as independent business-units or the businessmen aspiring to use their skills, knowledge and talents most effectively. In general, these people are successful, independent, ready to risk for the opportunity to reach greater results and aspired to the further development and growth.

They independently develop own careers and choose that companies that is on the way with them for certain period of time. It does not mean that they work poorly or do not devote themselves to this company. Just during the period when their own vector and vector of the company development coincide, top-managers work in the company most effectively. At moment when these vectors disperse, the successful manager most likely will prefer to leave. And this will be the correct decision. In fact otherwise or he either should renounce his plans for development, or his activity would not bring the maximal advantage of the company.

Perfect employer portrait

Thus, the ideal employer for top-manager is the one who moves with same rate in the same direction. It is obvious, that the one who will manage to involve and longer as possible keep the most talented and effective managers, can achieve the greatest successes.

To win “war for talents” the company should:

• Have detailed plans for development and to lead them up to the employees, attaching top-managers to development of these plans;
• Care for its reputation in the market;
• Find effective top-managers; give them the corresponding breadth of authority and independence in decision-making;
• Result the revenue of the candidate in dependence with his personal contribution to development of the company;
• Pay attention to establishment of constructive interrelations among top-managers and proprietors of the company.

Inviting top-manager to join the company it is necessary to keep in mind that his efficiency depends not only on personal abilities and achievements, but also on those conditions and resources which the new employer can offer him.

TRANSEARCH International (c)